Social Capital as a Conduit for Alliance Portfolio Diversity
Collins, J. D. 2013. Social Capital as a Conduit for Alliance Portfolio Diversity. Journal of Managerial Issues. 25(1): 62-78
Posted: 26 Sep 2013
Date Written: September 25, 2013
Alliance portfolio diversity is a construct that is increasingly receiving attention in the literature as it has been linked to a firm's performance and innovation. Although recent studies have focused on analyzing how portfolio diversity affects performance, there is a need to address the factors that influence portfolio diversity as well. The purpose of this study was to test whether the number and strength of social capital connections play a role into the alliance portfolio diversity of a firm. To do so, two different levels of antecedents, top management team level and firm level, were examined. A sample of 300 randomly selected Standard & Poor's firms were analyzed by time-series regression. The results suggest that at both the firm- and top management team level, the number and strength of social capital connections held is positively related to the firm's alliance portfolio diversity. Implications for managers and researchers are discussed.
Keywords: alliance portfolios, knowledge diversity, social capital
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